LONDON (SHARECAST) - Consumer packaging outfit Rexam has sold its Food Plastics operations in Yate in the UK, Lidkoping in Sweden and Stilling in Denmark, for £25m including debt assumed, it said today.
The businesses had combined sales of £67m in 2005 and net assets of £27m, including capitalised goodwill. The proceeds will be used to pay down borrowings.
Rexam said it will now focus its Food Plastics operation on developing a global business in the higher margin, faster growing market for high-barrier containers.
It has pioneered this type of product in the US, it said, and has more than half of the US market for them. The operation at Deeside in the UK will be developed to service European demand.
The firm also said it has started the process to sell its refillable PET bottle operation, Rexam Petainer, based in Sweden and the Czech Republic. Source |
